Vehicle Price Haggling: What to Know before you step onto the Lot

Buying a vehicle is not at all like buying a pair of shoes or a bunch of grapes. You are going to be paying for this object for the next several years and will need it to last for as long as possible. Therefore, it is critical that you do not pay more than your desired vehicle is worth. What are some ways that you can haggle effectively to get the right price on your next car?

1) Know What You Want Before Going to the Dealership

The easiest way to spend too much on a car is to have no idea what you want before you go to the dealership. The goal of the dealership is to maximize profits and get you to spend as much money as possible. By knowing what you want ahead of time, you can skip the sales pitch and go straight into negotiating the price. For example, if you know that you want a Hyundai Elantra, you won’t be duped into buying a Porsche for $20,000 more.

2) Negotiate Price, Trade In and Then Talk Payment

Whenever you negotiate a car deal, you want to negotiate the price of the car first. This is because a salesperson may try to get you to pay more by offering a lower monthly payment or by guaranteeing more for a trade in. However, your monthly payment and the value of your trade in mean nothing if you are still paying too much for the car. Remember, you want a 60 month loan if possible because you pay the least amount of interest without breaking the bank for the monthly payment.

3) Never Be Afraid to Walk Away

Whether you are dealing with a private seller or a dealership, you should never be afraid to walk away. When a customer walks away, it represents a lost sale and a potential commission out the window. Therefore, do not be afraid to exercise your power as a consumer to get the best possible deal.

4) Have Alternate Financing Available

When you start to negotiate a deal, make sure that you have financing lined up in case the dealer tries to play games with you when it comes to paying for the car. Some dealers may try to tell you that your credit score is lower than it is to hike up your interest rate or tell you that you can only qualify if you have a cosigner. This makes it necessary to only go to credible dealerships. Your local credit union may be able to get you a new car deal with an APR of 2 percent or less.

Know ahead of time what you want, check your credit and get financed before you start shopping if you want the best deal on your next car. When tens of thousands of dollars are at stake, you want to know that you have spent your money well.

Author Bio:
This Article is written by Erika Remmington in connection with a Lansing, Michigan Car Dealer. Erika is a recent graduate from the University of California, Berkeley in linguistics and a minor in business. Erika enjoys spending time with her family and rock climbing in her spare time.